These are my opinions on some stocks that I follow and/or own. They are not to be considered as investment advice. I will try to post as many accurate facts as I can. If you disagree with my opinions or have noticed an error in my statements feel free to send me your comments. Please do not follow my advice unless you are willing to lose money without blaming me or taking legal actions! I encourage you to do your own homework and understand the risks before making any investments.

Friday, October 05, 2007

Genzyme (GENZ) stock breaks out on good news

Genzyme (GENZ) saw its shares break out last week from $62.5 to over $68 on higher than average volume. The weekly chart below demonstrates this movement and its significance as it broke a long term trend of lower highs that started in 2005.

This move was catalyzed by the October 4th vote by Bioenvision shareholders to decide the fate of the sale of the company to Genzyme.

In addition, on Friday, Genzyme announced approval of Elaprase, its enzyme replacement therapy to treat Hunter syndrome. The company is seeking approval in other countries as well.

I believe this latest strong should be considered a great buying opportunity. The stock has had a strong move this week and may move sideways for some time but the charts signal a break out and the stock should move towards new highs. I have previously mentioned the low historical valuation of GENZ which was trading at 15.9 times 2008 earnings (click here to see that article). I anticipate $80 price per share within 3-6 months.